Legal Showdown: Trump's Attempt to Oust Fed Governor Stall

In a significant legal hurdle for President Donald Trump, a federal judge temporarily blocked his attempt to remove Federal Reserve Governor Lisa Cook on Tuesday. The ruling, delivered by U.S. District Judge Jia Cobb in Washington, D.C., comes amid an unprecedented legal battle that has the potential to threaten the central bank's autonomy.

The Trump administration accused Cook of committing mortgage fraud before her appointment. However, the court found these claims likely insufficient to justify her removal. Cook, the first Black woman to serve as a Fed governor, denies any wrongdoing and described the accusations as a pretext to dismiss her over her monetary policy stance.

This legal dispute is pivotal, potentially reaching the U.S. Supreme Court. It holds broader implications for the Federal Reserve's capacity to set interest rates independent of political pressure, a cornerstone of any central bank's function to curb inflation. The Fed remains mum on the ruling, maintaining Cook's position pending further proceedings.

(With inputs from agencies.)